Mercedes-Benz C-Class and Vito models with diesel engines and a sports utility variant of the sedan, known as the GLC, were the main cars found to be at fault, the ministry said.
Germany ordered Monday the recall of some 774,000 vehicles from Mercedes-Benz maker Daimler across Europe, citing illegal "defeat devices" created to hide high levels of harmful emissions from regulators´ tests.
"The government will order 238 000 Daimler vehicles to be immediately recalled Germany-wide because of unauthorised defeat devices", the ministry said in a statement.
Mr Scheuer said that Daimler was willing to work "with co-operative transparency" with the government and "at maximum speed".
Daimler declines to comment on the 1 million vehicles figure, but said it is cooperating fully and transparently with the KBA and Germany's Transport Ministry.
Mercedes-Benz is disputing whether or not the devices are indeed illegal, but would not confirm how many vehicles they were installed in. However, the KBA has taken issue with the emission control features amid suspicion they allow vehicles to emit excess pollution without detection.
The emissions scandal has hung over the German auto industry since September 2015, when Volkswagen admitted to using software that could tell when a diesel vehicle was being tested and temporarily lower its toxic emissions to pass USA regulations.
The "Dieselgate" scandal has cost VW about $30 billion in fines and other costs.
Prosecutors raided Munich-based BMW in March, saying their investigation was "only just getting started" after gathering evidence, and announced on Monday they suspect Audi chief executive Rupert Stadler of fraud.
"The pressure is rising, but it´s of course up to the politicians" how much progress is made, Dudenhoeffer said.
Since rival Volkswagen admitted in 2015 to cheating USA emissions tests, German automakers including Daimler and BMW have faced a backlash against diesel technology in which they have invested billions of euros.
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